Suppose the state legislature in your state imposes a state licensing fee of $100 per year to be paid by all firms that file state tax revenue reports. This new business tax:
A) increases marginal cost.
B) decreases marginal cost.
C) increases marginal revenue.
D) decreases marginal revenue.
E) none of the above
E
You might also like to view...
When the cross price elasticity between good X and other related goods is positive and very low, firm X can be assumed to have:
A) minimal market power. B) moderate market power. C) a significant amount of market power. D) virtually no market power.
Which of the following is not a reason why government agencies subsidize basic research?
a. The private market devotes too few resources to basic research. b. The general knowledge developed through basic research can be used without charge. c. The social benefit of additional knowledge is perceived to be greater than the cost of the subsidies. d. The government wants to attract the brightest researchers away from private research firms.